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ARCHIVED - Telecom Decision CRTC 2010-68

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Télébec, Limited Partnership - Application for forbearance from the regulation of business local exchange services

In this decision, the Commission approves Télébec's request for forbearance from the regulation of business local exchange services in the exchange of Château-Richer, Quebec. The Commission denies Télébec's request for forbearance in the exchanges of Contrecoeur and Norbertville, Quebec.

Introduction

1.

The Commission received an application by Télébec, Limited Partnership (Télébec), dated 27 November 2009, in which the company requested forbearance from the regulation of business local exchange services1 in the exchanges of Château-Richer, Contrecoeur, and Norbertville, Quebec.

2.

The Commission received submissions and/or data regarding Télébec's application from Quebecor Media Inc., on behalf of its affiliate Videotron Ltd. The public record of this proceeding, which closed on 17 December 2009, is available on the Commission's website at www.crtc.gc.ca under "Public Proceedings" or by using the file number provided above.

Commission's analysis and determinations

3.

The Commission assessed Télébec's application based on the local forbearance test set out in Telecom Decision 2006-15, as amended by the Governor in Council's Order Varying Telecom Decision CRTC 2006-15, P.C. 2007-532, 4 April 2007 (modified Telecom Decision 2006-15). Specifically, it considered the following four elements:

a) Product market

4.

The Commission received no comments with respect to Télébec's proposed list of business local exchange services.

5.

The Commission notes that Télébec sought forbearance for 31 tariffed business local exchange services. In addition, it notes that 30 of these services were included in the list of services established in Telecom Decision 2005-35.

6.

The Commission considers that the Service Charges service is not eligible for deregulation in accordance with the criteria set out in modified Telecom Decision 2006-15, because it is a generic service and generic services were excluded from the scope of the proceeding pertaining to forbearance from regulation of local exchange services. The list of 30 approved services is set out in the Appendix to this decision.

b) Competitor presence test

7.

The Commission notes that, for the Château-Richer exchange, the information provided by the parties confirms that there is, in addition to Télébec, one independent, facilities-based, fixed-line telecommunications service provider.2 This service provider provides local exchange services in the target market and is capable of serving at least 75 percent of the number of business local exchange service lines that Télébec is capable of serving.

8.

Accordingly, the Commission determines that the exchange of Château-Richer meets the competitor presence test.

9.

The Commission notes that Télébec estimated Videotron's serving capability in the Contrecoeur and Norbertville exchanges based on the results of a visual inspection that indicated that Videotron's facilities "passed by" commercial buildings. As the Commission determined in Telecom Decision 2008-84, facilities "passing by" a building do not, alone, demonstrate a competitor's capability to provide a service.

10.

The Commission also notes that, for the Norbertville exchange, Télébec requested that the competitor's serving capacity be estimated by multiplying by three the number of clients that the competitor is presently serving, in accordance with Telecom Decision 2007-70. However, the Commission notes that this methodology is only used in cases where the competitor cannot provide an estimate of the total business lines it is capable of serving. Therefore, this methodology cannot be used to confirm whether the competitor can serve at least 75 percent of the local business lines that the incumbent is capable of serving.

11.

The Commission further notes that Videotron is the only other independent facilities-based, fixed-line telecommunication service provider present in the Contrecoeur and Norbertville exchanges. Videotron submitted in confidence an estimate of the number of business lines that it is capable of serving in these two exchanges. The Commission determines that Videotron is not capable of serving at least 75 percent of the business local exchange services lines that Télébec is capable of serving in these exchanges.

12.

Accordingly, the Commission determines that the exchanges of Contrecoeur and Norbertville do not meet the competitor presence test.

c) Competitor quality of service (Q of S) results

13.

The Commission notes that Télébec submitted competitor Q of S results for the period of June to November 2009.

14.

The Commission has reviewed Télébec's submitted competitor Q of S results and finds that the company has demonstrated that during this six-month period it

i) met, on average, the Q of S standards for each indicator set out in Appendix B of modified Telecom Decision 2006-15, as defined in Telecom Decision 2005-20, with respect to the services provided to competitors in its territory; and

ii) did not consistently provide any of those competitors with services that were below those Q of S standards.

d) Communications plan

16.

The Commission has reviewed Télébec's communications plan and is satisfied that it meets the information requirements set out in modified Telecom Decision 2006-15. The Commission approves the proposed communications plan and directs Télébec to provide the resulting communications materials to its customers in both official languages, where appropriate.

Conclusion

17.

The Commission finds that Télébec's application meets all the local forbearance criteria, set out in modified Telecom Decision 2006-15, for the exchange of Château-Richer.

18.

Pursuant to subsection 34(1) of the Telecommunications Act (the Act), the Commission finds as a question of fact that a determination to forbear, to the extent specified in modified Telecom Decision 2006-15, from exercising its powers and performing its duties in relation to Télébec's business local exchange services listed in the Appendix and future services that fall within the definition of local exchanges services set out in Telecom Public Notice 2005-2 as they pertain to business customers only, in this exchange, would be consistent with the Canadian telecommunications policy objectives set out in section 7 of the Act.

19.

Pursuant to subsection 34(2) of the Act, the Commission finds as a question of fact that these business local exchange services are subject to a level of competition in this exchange sufficient to protect the interests of users of these services.

20.

Pursuant to subsection 34(3) of the Act, the Commission finds as a question of fact that to forbear, to the extent specified in modified Telecom Decision 2006-15, from exercising its powers and performing its duties in relation to the business local exchange services in this exchange would be unlikely to impair unduly the continuance of a competitive market for these services.

21.

In light of the above, the Commission approves Télébec's application for forbearance from the regulation of the local exchange services listed in the Appendix and future services that fall within the definition of local exchange services set out in Telecom Public Notice 2005-2, as they pertain to business customers only, in the exchange of Château-Richer, subject to the powers and duties that the Commission has retained as set out in modified Telecom Decision 2006-15. This determination takes effect as of the date of this decision. The Commission directs Télébec to file with the Commission Télébec's revised tariff pages within 30 days of the date of this decision.

22.

The Commission finds that Télébec's application does not meet all the local forbearance criteria set out in modified Telecom Decision 2006-15 for the exchanges of Contrecoeur and Norbertville. Accordingly, the Commission denies Télébec's application for forbearance in these two exchanges.

Secretary General

Related documents

Télébec, Limited Partnership – Application for forbearance from the regulation of business local exchange services, Telecom Decision CRTC 2008-84, 8 September 2008

Bell Aliant – Applications for forbearance from the regulation of business local exchange services, Telecom Decision CRTC 2007-70, 10 August 2007

Forbearance from the regulation of retail local exchange services, Telecom Decision CRTC 2006-15, 6 April 2006, as amended by Order in Council P.C. 2007-532, 4 April 2007

List of services within the scope of the proceeding on forbearance from the regulation of local exchange services, Telecom Decision CRTC 2005-35, 15 June 2005, as amended by Telecom Decision CRTC 2005-35-1, 14 July 2005

Forbearance from regulation of local exchange services, Telecom Public Notice CRTC 2005-2, 28 April 2005

This document is available in alternative format upon request, and may also be examined in PDF format or in HTML at the following Internet site: http://www.crtc.gc.ca

Footnotes:1 In this decision, "business local exchange services" refers to local exchange services used by business customers to access the public switched telephone network and any associated service charges, features, and ancillary services.